Awesome demo!
While playing around with this, I found an interesting (and perhaps unintentional) use case.
By hovering over different songs at appropriate times, it mimics a hard cut using a DJ mixer.
I'm not as technical as I'd like to be, but it seems like a neat bi-product of very low latency using HTML5 with your simultaneous auto-play.
Might be an interesting opportunity for a new type of cloud DJ platform :)